Prodware SA (ALPRO) AI Stock Analysis

• Market Cap: €202.99M
• Dividend Yield: N/A
• Average Volume (3M): 1.32K
• Price to Earnings (P/E): 7.3
• Beta (1Y): 0.24
• Revenue Growth: 21.73%
• EPS Growth: N/A
• Country: FR
• Employees: 1,420
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 2.30
• Shares Outstanding: 7,654,251
• 10 Day Avg. Volume: 2,959
• 30 Day Avg. Volume: 1,320
• PEG Ratio: -0.01
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.11
• P/FCF Ratio: -129.34
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: €32.00 ▲(14.29% Upside)

Prodware SA's stock score is driven primarily by its strong technical indicators and attractive valuation. The stock shows significant bullish momentum and appears undervalued with a low P/E ratio. While financial performance shows revenue growth and improved profitability, high leverage and negative free cash flow are risks that need addressing.

Positive Factors

Revenue Growth

Prodware SA's robust revenue growth of 75.7% indicates a strong market position and effective product offerings, supporting long-term business expansion.

Operational Efficiency

Improved profit margins reflect enhanced operational efficiency, suggesting the company is effectively managing costs and increasing profitability.

Product and Market Strategy

The focus on innovative software solutions tailored for retail and distribution sectors positions Prodware SA for sustained market relevance and customer engagement.

Negative Factors

High Leverage

High leverage can constrain financial flexibility, posing risks to long-term stability if not managed carefully, especially during economic downturns.

Negative Free Cash Flow

Negative free cash flow suggests potential liquidity issues and limits the company's ability to invest in growth opportunities without additional financing.

Capital Expenditure Management

High capital expenditures impacting free cash flow highlight the need for better capital allocation to ensure sustainable financial health and growth.

Prodware SA Business Overview & Revenue Model

Company Description

Prodware SA (ALPRO) is a leading provider of software solutions and IT services, specializing in the development and integration of enterprise resource planning (ERP) systems, customer relationship management (CRM) solutions, and cloud computing services. The company operates in various sectors, including manufacturing, retail, and logistics, offering tailored solutions that enhance operational efficiency and drive digital transformation for its clients. Prodware SA is recognized for its expertise in Microsoft Dynamics products, enabling businesses to streamline their processes and improve decision-making through innovative technology.

How the Company Makes Money

Prodware SA generates revenue primarily through the sale of software licenses, implementation services, and ongoing support and maintenance contracts. The company's key revenue streams include fees from ERP and CRM solution sales, consulting services for system integration, and custom software development projects. Additionally, recurring revenue is generated from subscription-based models for cloud services and support. Strategic partnerships with major technology providers, particularly Microsoft, enhance Prodware's market position and facilitate access to a larger client base, thereby contributing significantly to its earnings.

Prodware SA Financial Statement Overview

Summary

Prodware SA demonstrates strong revenue growth and improved profitability, turning previous losses into gains. However, the high debt level and negative free cash flow highlight areas for improvement. The company has shown operational efficiency improvements, but maintaining financial stability will require careful debt and expenditure management.

Income Statement

Prodware SA's income statement shows strong revenue growth, with a significant increase from €380.57M in 2023 to €668.73M in 2024, representing a 75.7% growth rate. The Gross Profit Margin improved to 16.6% in 2024, and the Net Profit Margin turned positive at 3.3% after a net loss in 2023. The EBIT and EBITDA margins also improved to 8.5% and 17.0%, respectively, indicating better operational efficiency. These metrics suggest that the company has improved its profitability and efficiency over the past year, although profit margins remain modest for the industry.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 3.25, which indicates significant leverage. However, the equity ratio is 15.9%, suggesting a reasonable level of equity relative to total assets. Return on Equity (ROE) improved to 22.4%, reflecting better profitability relative to shareholder investments. While the company has managed to improve its equity base, the high leverage poses a potential risk, necessitating careful financial management.

Cash Flow

Prodware SA's cash flow statement reveals challenges in free cash flow generation, with a negative free cash flow in 2024. The operating cash flow to net income ratio is healthy at 2.96, indicating good conversion of earnings to cash. However, the free cash flow to net income ratio is negative due to high capital expenditures. While operating cash flow remains robust, the company needs to address its capital expenditure management to improve free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	715.70M	668.73M	380.57M	188.28M	165.52M	172.40M
Gross Profit	58.65M	110.93M	96.67M	32.83M	15.49M	17.08M
EBITDA	-157.28M	113.50M	64.47M	49.65M	30.40M	43.16M
Net Income	20.74M	22.20M	-23.71M	15.70M	-68.46M	7.62M
Balance Sheet
Total Assets	628.87M	623.76M	589.79M	352.33M	325.24M	376.62M
Cash, Cash Equivalents and Short-Term Investments	97.81M	97.12M	93.59M	56.14M	65.17M	36.10M
Total Debt	320.46M	321.59M	281.39M	185.50M	185.98M	148.48M
Total Liabilities	512.59M	524.77M	512.85M	251.64M	241.91M	224.91M
Stockholders Equity	116.29M	98.96M	76.74M	100.51M	83.33M	151.71M
Cash Flow
Free Cash Flow	31.67M	-577.00K	47.00M	-1.03M	-16.51M	5.44M
Operating Cash Flow	94.31M	65.77M	84.52M	36.46M	33.35M	28.48M
Investing Cash Flow	-66.68M	-65.89M	-121.54M	-40.22M	-49.83M	-19.03M
Financing Cash Flow	10.40M	18.95M	71.55M	-6.10M	40.36M	-9.80M

Prodware SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:ALPRO, the sentiment is Positive. The current price of 28 is above the 20-day moving average (MA) of 27.93, above the 50-day MA of 25.96, and above the 200-day MA of 15.10, indicating a bullish trend. The MACD of 0.56 indicates Positive momentum. The RSI at 67.03 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:ALPRO.

Prodware SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALPRO	80 Outperform	€202.99M	7.34	―	―	21.73%	―
SWP	75 Outperform	€333.92M	16.39	25.87%	5.63%	14.40%	1.92%
ALBFR	68 Neutral	€333.19M	39.83	21.64%	―	24.74%	18.04%
LIN	63 Neutral	€230.88M	8.37	―	3.68%	0.23%	10.46%
74SW	62 Neutral	€1.15B	23.40	9.71%	―	103.99%	17.53%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CLA	41 Neutral	€68.36M	-21.58	―	―	-0.95%	49.19%